What are the minimum coverage limits for automobile insurance that a Noodles & Company franchisee must maintain, covering bodily injury and property damage liability?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
nsure the property on a replacement-cost basis. Deductible may not exceed $10,000.
Automobile Insurance with limits of not less than $1,000,000 covering bodily injury liability and property damage liability arising out of the use of any owned, nonowned or hired motor vehicle
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–32)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, franchisees are required to maintain automobile insurance with specific minimum coverage limits. This insurance must cover bodily injury and property damage liability arising from the use of any owned, non-owned, or hired motor vehicles.
The minimum coverage limit for this automobile insurance is $1,000,000. Additionally, the policy deductible may not exceed $25,000 for physical damage and $100,000 for liability damage.
It is important for prospective Noodles & Company franchisees to understand these insurance requirements, as failure to maintain adequate coverage could result in a breach of the franchise agreement. Franchisees should consult with an insurance professional to ensure they obtain the appropriate coverage to meet these requirements and adequately protect their business from potential liabilities related to vehicle use.